Which of the following is true?
A)Real GDP equals nominal GDP divided by the current price level index, times one hundred.
B)In periods of inflation, real GDP growth will tend to be greater than nominal GDP growth.
C)In a country with a growing population, real GDP could be falling at the same time that real GDP per capita was rising.
D)Marrying one's housekeeper would leave reported GDP unchanged.

Question

Which of the following is true?
A)​Real GDP equals nominal GDP divided by the current price level index, times one hundred.
B)​In periods of inflation, real GDP growth will tend to be greater than nominal GDP growth.
C)​In a country with a growing population, real GDP could be falling at the same time that real GDP per capita was rising.
D)​Marrying one's housekeeper would leave reported GDP unchanged.

Quizplus · Accepted Answer

Real GDP is calculated by dividing nominal GDP by the price level (expressed as an index) and then multiplying by 100. This adjusts for inflation or deflation, providing a more accurate reflection of an economy's size and growth over time.

Which of the Following Is True